The Geopolitical Imperative for Reorganising Global Supply Chains
Attribution: Amitendu Palit, "The Geopolitical Imperative for Reorganising Global Supply Chains," ORF Issue Brief No. 533, April 2022, Observer Research Foundation
Introduction
Amidst the COVID-19 pandemic, the reconstruction of global supply chains is being premised on geopolitics rather than just economic efficiency facilitated by globalisation. This is an unprecedented endeavour. Global supply chains in various industries have evolved based on the specific economic advantages of different countries in contributing to the diverse stages of the supply network. These advantages range from being a supplier of raw materials, intermediates, parts and components, to having the ability to design and market. Producers from different countries with distinct advantages were brought together to maximise economic efficiencies, but this rational is now being contested by geopolitical developments. Economic efficiency alone is no longer the driver of supply chains, with geopolitical imperatives becoming significant factors in the organisation of such
